Michael O’Leary has warned that Irish airfares will hit “record levels” this Christmas.

Today, Dublin Airport announced it is likely to breach its 32 million annual passenger cap by the end of the year.

It is unclear what penalty will be imposed upon the airport but Ryanair’s Michael O’Leary said it is yet more evidence that the passenger cap needs to be increased.

“Airlines - including Ryanair and some of the American airlines - are diverting aircraft away from Dublin,” he told Newstalk Breakfast.

“Both this Christmas and next summer - it’s because we can’t get any additional slots.”

The airport has lodged a planning application with Fingal County Council, asking for the cap to be increased from 32 million to 40 million.

Eamon Ryan has said he would "not intervene in what is a legal process" for Fingal County Council but Mr O’Leary said the Government needs to come out in favour of the cap, which he described as  “limiting growth” in the Irish economy.

“We’re calling on Simon Harris and Micheál Martin, the Taoiseach and the Tánaiste - take action where the Transport Minister won’t,” he said.

An aerial view of Dublin Airport from the perspective of a Boeing 737. Image: Mint Photography / Stockimo / Alamy Stock Photo

Mr O’Leary said several airlines including Ryanair have seen their applications for extra slots over Christmas turned down due to the passenger cap.

He said Ryanair has been forced to make alternative plans as a result.

“We have been denied the extra slots we traditionally get every Christmas,” he said.

“They have been blocked this year by the Irish Aviation Authority,” he said.

“None of the airlines are getting the extra flights that we get every Christmas.

“We have now put 50,000 extra seats from London into Belfast - we’re diverting Dublin seats up to Belfast this Christmas because none of us are being allocated the additional slots.”

Passengers disembark from planes at Dublin Airport. Image: Phil Crean A / Alamy

He predicted that this will lead to a surge in demand for flights from London to Dublin, pushing prices to “record levels” this year.

As a result of this, he believes, a public outcry might force authorities to increase the cap.

“I think the only thing that will really act as a spur is when the crisis blows up this Christmas when the airlines offer 250,000 less seats to Dublin this Christmas,” he said.

“When airfares hit €500 one-way, when 50,000 Dubliners are coming home to visit friends and family via Belfast.

“Then we’ll finally probably get something done and when, hopefully following an election, we’ll have a new Transport Minister committed to fixing transport - unlike the present one.”

In a statement to Newstalk, a spokesperson for the Department of Transport said that it seemed "difficult to reconcile that an airline that recently reported that its profits grew by 34% to €1.92 billion in 2023 should have to increase its flight costs to such an extent."

"There is no impediment to any airline introducing new routes or services at other Irish airports and airlines are encouraged to explore these options as an alternative to Dublin Airport until planning permission may be granted for the lifting of the passenger cap," he added.

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Main image: Ryanair's Michael O’Leary . Picture by: Brian Lawless